MRD ACQUIRES WRM (AND OTHERS?) ACREAGE IN LINCOLN, JACKSON, CLAIBORNE AND BIENVILLE
Memorial Resource Development Corp. Announces Acquisition of Additional Acreage in North Louisiana, Operational Update and Increased Borrowing Base
HOUSTON, Sept. 21, 2015 (GLOBE NEWSWIRE) -- Memorial Resource Development Corp. (Nasdaq:MRD) today announced it has entered into separate transactions to acquire or lease certain acreage located adjacent to the Company's existing operating areas in North Louisiana.
Since January 1, 2015, MRD has either added, acquired, agreed to acquire, or secured the option to lease, an additional 132,758 net acres in North Louisiana for a total of approximately $373.8 million, which assumes the full option lease exercise cost, through the following:
- A definitive purchase and sale agreement to acquire a third-party's acreage in Jackson and Lincoln Parishes, Louisiana;
- An acreage option agreement to lease acreage in Bienville, Claiborne, Jackson and Lincoln Parishes, Louisiana; and
- MRD's continued organic leasing efforts in North Louisiana year-to-date 2015.
"I am excited about MRD's acreage additions that further increase our exposure to one of the premier basins and some of the most prolific natural gas fields in the country," said John Weinzierl, Chief Executive Officer of MRD. "These transactions are consistent with our strategy of expanding our already industry-leading position in North Louisiana. Based on our technical expertise, we believe the additional acreage will provide us additional opportunities to grow our inventory of over-pressured, horizontal, Lower Cotton Valley drilling projects."
As of September 21, 2015, after giving effect to the acquisition described below, and assuming the full exercise of the option agreement, MRD had 215,771 gross (193,915 net) acres in and around the Terryville Field, which represents a 276% increase in net acres since its initial public offering ("IPO") in June 2014.
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on
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It is good news but it's not a Haynesville Shale repeat. Lack of competition and low commodity prices will limit the economic impact. This does continue an evolution in O&G that could lead to decades of low prices. First a few companies used horizontal drilling and hydraulic fracture stimulation to produce natural gas. Then a few companies decided to try the technology on oil prone formations. Now those same technologies will be deployed in "tight" conventional sands. At this rate the oil, gas and NGL glut will last for 50 years. Great news for consumers and large end users such as the electric generation and chemical industries, not so good news for O&G companies and their shareholders. Mineral owners will benefit but only those with large land/mineral interests will make big money. Every one else should understand the nature of their royalty incomes and have plans to save/invest.
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Permalink Reply by lee on
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Skip I went to the Lincoln Parish Courthouse last week, I could not find an assignment of our lease (Choudrant area) from Wildhorse to MRD. I found the assignment of our lease from VLC to Wildhorse. Now we are getting letters to approve seismic and letters that MRD will not be responsible. I thought Wildhorse sold everything to MRD. Doesn't Wildhorse have to give permission since we leased to them? Should we sign the permit and just take the money or do we have a choice. Since Wildhorse we have heard is broke who would be responsible for any damages? Please advise if you have time.
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Permalink Reply by Skip Peel - Mineral Consultant on
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The last time I searched the public record MRD had not picked up any Wildhorse leases east of 18N-3W. All those were still held by WRM or any investors that have held on to them. MRD will not be responsible for anything soon as they have sold everything to Range Resources. The change of operator process may take a few months. Wildhorse is not broke. Heard from who? Be careful about coffee house rumor. It's not true, wholly or in some important part, nine times out of ten. As long as there are no additional rights transfered in the seismic agreement I'd suggest you sign it.
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